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WTI oil futures trim gains after bearish U.S. supply data

Published 01/14/2015, 10:36 AM
© Reuters.  WTI oil futures off the highs after bearish U.S. weekly supply data
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Investing.com - West Texas Intermediate oil futures trimmed gains on Wednesday, after data showed that oil supplies in the U.S. rose more than expected last week, exacerbating fears over a glut in supplies.

On the New York Mercantile Exchange, crude oil for delivery in February tacked on 14 cents, or 0.31%, to trade at $46.03 a barrel during U.S. morning hours. Prices were at around $46.34 a barrel prior to the storage report.

The U.S. Energy Information Administration said in its weekly report that U.S. crude oil inventories rose by 5.4 million barrels in the week ended January 9, compared to expectations for an increase of 0.5 million barrels.

Total U.S. crude oil inventories stood at 382.4 million barrels as of last week.

The report also showed that total motor gasoline inventories increased by 3.2 million barrels, below expectations for a gain of 3.5 million, while distillate stockpiles rose by 2.9 million barrels.

A day earlier, New York-traded oil futures hit $44.20, a level not seen since March 2009, before settling at $45.89, down 18 cents, or 0.39%, amid concerns over the gloomy economic outlook.

Elsewhere, on the ICE Futures Exchange in London, Brent oil for February delivery inched up 21 cents, or 0.45%, to trade at $46.80 a barrel.

On Tuesday, London-traded Brent prices touched $45.19 a barrel, the weakest level since April 2009, before ending at $46.59, down 84 cents, or 1.77%.

The World Bank lowered its global growth forecast to 3.0% for this year from an earlier estimate of 3.4%, citing weaker than expected growth in the euro zone, Japan and some major emerging economies.

The agency also trimmed its 2016 forecast for global growth to 3.3% from 3.5%.

London-traded Brent prices have fallen nearly 60% since June, when it climbed near $116, while WTI futures are down almost 58% from a recent peak of $107.50 in June.

Concerns over weakening global demand combined with indications that the Organization of the Petroleum Exporting Countries will not cut output to support oil markets have weighed on prices in recent months.

On Tuesday, United Arab Emirates’ oil minister said that OPEC will stick to its decision to keep oil output unchanged, regardless of current oil prices.

Elsewhere in the commodities market, copper for March delivery fell by as much as 7.9% to hit a session low of $2.434 a pound, a level not seen since June 2009, before trading at $2.493, down 15.1 cents, or 5.71%.

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